Citigroup stake sale may meet China opposition: report

[maddezmom]

Source: Reuters

NEW YORK/SHANGHAI (Reuters) - Citigroup Inc's (C.N) plans to raise capital by selling a $2 billion stake to China Development Bank (CHDB.UL) may be in jeopardy due to Chinese government opposition, The Wall Street Journal reported on Monday.

The report, quoting a person familiar with the situation, said Chinese government opposition surfaced over the weekend. It added, however, that it was not clear whether the deal had been scuttled.

A Citigroup spokesman in Hong Kong, Richard Tesvich, declined to comment, while a spokesman for state-owned China Development Bank could not immediately be reached for comment.

Battered by the subprime mortgage crisis, Citigroup is expected to report a fourth-quarter loss on Tuesday and may also announce it has secured additional capital of between $8 billion and $14 billion from sources such as the Middle East, media reports have said.



Read more: http://news.yahoo.com/s/nm/20080114/bs_nm/citigroup_china_dc;_ylt=AuPa9MGsgdj_bcHykGSUTuYBxg8F

[grahamhgreen]

1. Saudi's already owan a significant percentage of Citigroup (against Koranic law BTW)

significant